Ghana proposes six-point declaration to reform AU financing

Ghana has proposed a six-point declaration to strengthen the financing of the African Union, calling on member states to move beyond discussions and commit to concrete measures to secure the Union’s financial future.

The proposal, known as the Accra Declaration on Financing the Union, was presented by Foreign Affairs Minister Samuel Okudzeto Ablakwa at the 27th Extraordinary Session of the AU Executive Council on Financing the African Union in Accra.

The proposed declaration outlines six commitments, including;

• First, we endorse the integrated pathway (Option C) as our preferred model
  for financing and reform.
• Second, we commit each Member State to implementing the levy or an
  equivalent predictable and verifiable domestic mechanism, supported by
  transparent rules and reporting.
• Third, we adopt a unified programme-based budget, a medium-term
  expenditure framework, and the principle of one programme, one budget line.
• Fourth, we will capitalise the Peace Fund to reach the USD 1 billion target and
  establish a replenishment mechanism.
• Fifth, we endorse and institutionalise the African Union’s partnership with the
  Alliance of African Multilateral Financial Institutions.
• Sixth, we commit to reviewing contribution arrangements, including the
  contribution cap and the erosion of real value.

Mr Ablakwa said Ghana wanted the session to produce concrete commitments rather than end with discussions alone.

“Let this Session be remembered not for what we said, but for what we signed,” he told delegates.

Under the proposal, member states would endorse the integrated pathway, known as Option C, as the preferred model for financing and reforming the African Union.

They would also commit to implementing the levy on eligible imports or introducing an equivalent predictable and verifiable domestic financing mechanism, backed by transparent rules and reporting.

The declaration further proposes a unified programme-based budget, a medium-term expenditure framework and the principle of one programme, one budget line.

On the Peace Fund, Ghana wants member states to commit to raising its capitalisation to the US$1 billion target and establishing a replenishment mechanism to sustain it.

The proposal also calls for the institutionalisation of the African Union’s partnership with the Alliance of African Multilateral Financial Institutions and a review of contribution arrangements, including the contribution cap and the erosion of the real value of contributions.

As part of efforts to advance the proposals, Ghana will convene an Extraordinary Summit on African Financial Institutions in Accra in 2027, when it assumes the chairmanship of the African Union.

Mr Ablakwa said the summit would be a decisive opportunity for the continent to commit to building, capitalising and operationalising its financial institutions.

He also called on the AU Commission to prepare a time-bound implementation framework ahead of the summit, with clearly assigned responsibilities, deadlines, milestones and reporting arrangements.

The minister said the proposed declaration must also reflect the interests of women, young people and underrepresented groups.

“An inclusive Union must also be adequately financed. We will evaluate every decision in this Declaration for its impact on women, young people, and underrepresented groups. Africa’s young people are not spectators in this conversation; they are its very purpose,” he said.

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